U.S. Court of Federal Claims

U.S. Court of Federal Claims: A Unique Venue for Patent Disputes Against the Government

Washington, D.C. - The United States Court of Federal Claims (CFC) is a specialized court with nationwide jurisdiction, primarily known for handling monetary claims against the U.S. government. In the realm of patent law, its role is distinct and crucial. All patent infringement lawsuits against the United States must be filed in this court under 28 U.S.C. § 1498. This statute provides that a patent owner's exclusive remedy for the government's unauthorized use or manufacture of a patented invention is an action in the CFC for "reasonable and entire compensation." This also extends to government contractors acting with the government's authorization. Consequently, the CFC's patent docket is composed entirely of cases where the defendant is the U.S. government, a sharp contrast to the diverse dockets of federal district courts. All appeals from the CFC are heard by the U.S. Court of Appeals for the Federal Circuit, the same appellate court that reviews all patent-related appeals nationwide.

The patent litigation practice in the Court of Federal Claims is unique. Since the defendant is always the U.S. government, jury trials are not available; all cases are decided by a judge. The remedy is limited to monetary damages, as injunctive relief against the government is not permitted. This framework means traditional venue transfer motions are not a feature of CFC practice. The court is not generally considered a "rocket docket," with the timeline for patent cases often influenced by the complexities of government contracts and discovery involving federal agencies. Statistics on the average time-to-trial for patent cases specifically in the CFC are not as readily available as for major district courts, which typically see a median time to trial of around two years.

To streamline its patent cases, the Court of Federal Claims has adopted its own set of local patent rules, which supplement the main Rules of the United States Court of Federal Claims (RCFC). These rules establish a structured framework for the progression of a patent case, including procedures for infringement and invalidity contentions, similar to the local patent rules found in districts with heavy patent dockets like the Northern District of California. The RCFC itself is modeled after the Federal Rules of Civil Procedure. These specialized patent rules aim to facilitate a fair and efficient resolution of the often complex technological and legal issues presented in these cases.

One of the more prominent tracked cases at the court is Science Applications International Corporation (SAIC) v. United States. Filed in 2017, SAIC alleged that the government's procurement of heads-up displays and night vision goggle systems from SAIC's competitors infringed on several of its patents. The case has involved significant legal battles, including an early, notable ruling where the court denied the government's motion to dismiss, finding SAIC's patents were not directed to ineligible subject matter. In a more recent development, Microsoft, who had intervened in the case, was granted summary judgment of non-infringement in September 2023. Judge Eleni M. Roumel presided over this recent ruling. The case highlights the high-stakes nature of litigation in the CFC, often involving complex military and defense technology and billion-dollar government contracts.